Karachi: Irfan Iqbal Sheikh President FPCCI expressed profound concerns over burning issue of abysmal state of access to capital for businesses from banking channels as after further raise of 100 bps in SBP’s policy rate making it 17 percent, commercial banks would not be willing to lend to businesses for anything less than 20 percent.

He said capital and liquidity is like blood or lifeline for businesses; and, it is responsibility of government to protect businesses in general and SMEs in particular in these harsh ease of doing business and cost of doing business times.

He reiterated his stance that current tide of inflation is not demand-pull and raising interest rate will do no good to curtail inflation as phenomenon is cost-push due to supply-side disruptions, increasing commodity prices in international markets, progressively weakening rupee, loss of produce due to floods and lack of planning on part of government.

He demanded government must announce targeted amnesty scheme to industry and must offer concessional business loans, EFS, LTFF and TERF scheme to avert irreversible and inevitable losses to business, industry and trade community.

Suleman Chawla SVP FPCCI we do not have adequate raw materials, electricity is most expensive as compared to regional sub-regional competitors, gas supplies are not sufficient and we cannot borrow from banking system even for short-term, given exorbitant and unaffordable interest rates.­

Published in The Daily National Courier, January, 31 2023

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